Business Analysis

Once management has decided on its product concept and marketing scheme, it can evaluate the business charisma of the proposal. Business analysis involves a review of the, costs, sales and profit projections for new product to discover whether they satisfy the company's objectives. If they do, the product may move to the product development stage.

To estimate sales, the company may look at the sales history of same products and conduct surveys of market choice. It may then estimate and maximum and minimum sales to assess the range of risk. After preparing the sales forecast, management may estimate the expected prices and profits for the product, by including marketing operations, R&D, accounting, and finance costs. The company then utilized the sales and costs figures to analyze a new product's financial attractiveness.